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Tata Capital > Blog > Personal Use Loan > How to calculate CIBIL score for personal loan?

Personal Use Loan

How to calculate CIBIL score for personal loan?

How to calculate CIBIL score for personal loan?

CIBIL is one of the authorized bureaus in the country that calculates the credit score of each individual. Other authorized bureaus being Equifax, Experian and Highmark. A CIBIL score is a three-digit number ranging between 300 and 900 that acts as a benchmark for lenders to assess your credit health.

When you apply for personal loan, the CIBIL score becomes the most significant factor that determines your personal loan eligibility

A CIBIL score is derived from a combination of details relevant to your credit profile like your account’s outstanding balance and credit card payments. If you have been able to maintain a record of timely payments without any instances of default, your CIBIL score would be high. Alternatively, if you have missed a few monthly EMIs, it would hamper your credit score.

Additional Read: How Does a CIBIL Score Impact Your Personal Loan Eligibility?

As a preliminary step, lenders look for a minimum CIBIL score of 750 before a loan application is approved or rejected.

Calculating personal loan CIBIL score

The calculation of CIBIL score is done using a complex mathematical formula that includes several factors. Below are some of the most important of them that together lead to the CIBIL score being arrived at:

1. Credit History

Personal Loan Credit History

Carrying the highest weightage of about 30%, your credit score is calculated based on your credit history. Banks and other financial institutions send their credit-related information to the authorized credit bureaus in the country. Subsequently, the bureau compiles the information in the form of a detailed credit report and calculates your credit score. They have a month-on-month record of the previous three years of your monthly payments towards EMIs and credit card bills. It also includes all past records of EMI default, if any. 

2. Credit Utilization

This is another essential factor that has a weightage of 25% in your overall credit score. It is essentially the amount of money you owe to a lender as a percentage of the total personal loan amount you are entitled to taking. To arrive at this number, you need to divide the total outstanding loan with your total credit limit. A rising credit utilization over a period lends a negative impression on your credit score.

Additional Read: Top 5 Myths About Cibil Score for Personal Loan

3. Credit Mix

Your CIBIL score is also dependent on the composition of your loan portfolio. In simple words, it depends on how your total loans are distributed between secured and unsecured loans. A credit mix also has a significant weightage of around 25% in your personal loan CIBIL score.

4. No. of Credit Applications

The number of credit applications you have made in the past account for the remaining 20% of the CIBIL score calculation. A large number of credit applications makes a wrong impression with the credit bureau. 

Additional Read: How much CIBIL Score Required for Personal Loan?


These four factors contribute to the calculation of CIBIL score. Though you can't calculate your CIBIL score yourself; keeping an eye on it ensures a good score that lets yoAdditional Read: How much CIBIL Score Required for Personal Loan?u borrow money from genuine lenders, such as Tata Capital. If you need a personal loan and boast a high CIBIL score, Tata Capital has a lot to offer. Reach out to them today!

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